iPhone assembler Foxconn intends to slash 20 billion yuan ($2.9 billion) from its costs next year, according to Bloomberg.

Foxconn, which is the primary manufacturer of Apple's iPhones, predicts that 2019 will be a "very difficult and competitive year," Bloomberg reported Wednesday, citing an internal company memo.

The company cuts include a 6 billion yuan ($865 million) reduction in its iPhone-related expenses specifically, Bloomberg noted. It also intends to cut about 10 percent of its non-technical staff and review managers with annual salaries over $150,000.

Its expenses in the past year were about $6.7 billion, according to Bloomberg.